Print 71 comment(s) - last by callmeroy.. on Apr 30 at 10:41 AM

Blockbuster may have been busted by Netflix

For many years Blockbuster video enjoyed great success in the movie rental business. Blockbuster is one of the largest movie rental chains in the country, but the company has found that its continued existence is far from guaranteed.

Blockbuster has announced that there is "substantial doubt" about its ability to continue as a going concern. A going concern is a qualification that refers to an auditor's assessment of a company's ability to continue operations reports MSNBC.

Blockbuster is struggling with profitability and viability in the face of the rising popularity of mail-order rental services like Netflix the company stated in a SEC disclosure. Blockbuster had previously disclosed that an auditor was likely to raise doubts about its long-term viability.

Blockbuster stated last week that its revolving and term loan agreement had been amended giving the company a $250 million revolving loan for financing maturing on September 30, 2010. The company thinks it will be able to close the financing around May 11, but states that the closing of the loan is not assured at this point.

Blockbuster says that even if the loan is funded it, "may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern."

Blockbuster shares fell 3 cents to 85 cents in trading after hours after closing at 88 cents reports MSNBC. In July of 2008 Blockbuster was considering the purchase of now defunct Circuit City.  

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RE: Simple Solution...
By callmeroy on 4/8/2009 7:36:36 AM , Rating: -1
The smart comments and cheap shot remarks aside the I believe the first guy replying was correct....461 gigs/month is an absurd amount for a single home use account -- to me I don't care if what the data was your tax information, your family photo albums or pirated software (that's another debate entirely)...461 is be the least bit upset with Comcast that you were told/warned/whatever about the 461 gig in one month thing is ridiculous and unreasonable on the part of the person who did the downloading. I dislike comcast for a couple reasons myself but on that issue I'd side with comcast. As far as unlimited access goes --- I do believe the other guy is also correct....I'm curious now myself, I'm going to check the agreement at home and see if they use the terminology of "unlimited ACCESS" silly as it seems corporations are sticklers for how things are worded and for instance if it says "ACCESS" in a court case they'd likely plead "Your honor, our terms state unlimited ACCESS 24/7 for one flate monthly price....we do not state anywhere that it reads as unlimited *BANDWIDTH*...."....

250 gig is reasonable cap for home use for most peoples, they derive those limits very likely from comparing a cross section of their customer's usage habits from across the country and then they set the limits. I'm fairly sure if they saw 75% of their users on average did more than 250 gb per month consistently they would raise the cap.

And finally, I think they should allow folks the option to purchase UNLIMITED bandwidth (or at least 1TB/month) for say an extra $10 or something/month or whatever the industry rate right now for an extra 750 gb/month would cost since I'm not sure.

I myself am not a heavy downloader, I'd have to severely change my current habits to even reach the current cap.

RE: Simple Solution...
By callmeroy on 4/8/2009 7:37:49 AM , Rating: 2
give anyone +1 point for the ability to read through the typos in that last post...sorry I'm off to a rough morning, didn't get much sleep and in earlier than normal today...

RE: Simple Solution...
By DFranch on 4/8/2009 12:50:14 PM , Rating: 2
I must have missed the typos, I understood everything which was said in the previous post. Unless you consider people disagreeing with you to be a typo. 461GB in a month is a lot of data, legitimate or not. I'll take my +1 now.

RE: Simple Solution...
By callmeroy on 4/30/2009 10:41:27 AM , Rating: 2
um kidding 461 a month is a lot...which is EXACTLY what i said...I'm completely confused on my rating on this

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